Major HMO acquisition for Aetna business division
Aetna U.S. Healthcare, the health business unit of Aetna Inc., has signed an agreement to acquire Virginia Mason Health Plan, a Washington state HMO owned and operated by Virginia Mason Medical Center (VMMC). One of Seattle’s major integrated delivery networks, VMMC consists of a 366-bed hospital and nearly 400 multispecialty physicians at 22 sites throughout Western Washington.
Expected to close in September 1997, the acquisition is a key step in Aetna’s continued efforts to expand health business across the country, says Mike Cardillo, president of Aetna U.S. Healthcare. "The purchase of this HMO accelerates our growth in the region and also allows us to move quickly toward filing for a Medicare risk product, as well as provides an excellent addition to our existing PPO and indemnity plans already being offered in the state of Washington."
Roger Lindeman, MD, president of VMMC, claims his organization has operated a successful health plan but now intends to focus its efforts on core competencies namely, providing exceptional primary and specialty care. "Virginia Mason continues to retain full ownership of its hospital, research center, network of neighborhood clinics and care delivery system. There will be no changes in care to patients as a result of this sale," says Lindeman.
The VMMC Health Plan being acquired by Aetna presently serves 40,000 members in the region. Aetna U.S. Healthcare’s current Washington network includes 1408 primary care physicians, 2726 specialists, and 29 hospitals serving 126,000 PPO and indemnity members. Nationally, the company has HMOs in 23 states and the District of Columbia.
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